Previous Year Question
What is/are the recent policy initiative(s) of the Government of India to promote the growth of the manufacturing sector?
Setting up of National Investment and Manufacturing Zones
Providing the benefit of single-window clearance
Establishing the Technology Acquisition and Development Fund
Select the correct answer using the code given below:
1 only
2 and 3
1 and 3
1, 2 and 3
Correct Answer: D
Detailed Solution
The question is based on the initiatives proposed under the Government of India’s National Manufacturing Policy, 2011. The policy sought to promote manufacturing growth, employment creation, technological capability and global competitiveness.
Statement 1 is correct—National Investment and Manufacturing Zones
The policy proposed the establishment of National Investment and Manufacturing Zones. These were to be developed as large, integrated industrial townships possessing world-class infrastructure.
Important features included:
A general minimum area of 5,000 hectares for a greenfield NIMZ.
At least approximately 30% of the total area as the processing area.
Integrated development of industry, housing, social infrastructure and essential services.
Management through a Special Purpose Vehicle.
A major role for State Governments in land provision and external connectivity.
Statement 2 is correct—Single-window clearance
Manufacturing projects often required approvals from several authorities at the Union, State and local levels. The policy therefore proposed single-window clearance and investor facilitation through the SPV mechanism.
Single-window clearance does not necessarily mean that one department itself grants every legal approval. It provides a coordinated interface through which an investor can complete applications, permissions and compliance procedures involving different authorities.
This can:
Reduce approval time.
Improve coordination among departments.
Reduce compliance costs and uncertainty.
Limit delays in project implementation.
Statement 3 is correct—Technology Acquisition and Development Fund
The National Manufacturing Policy provided for establishing a Technology Acquisition and Development Fund.
Its objectives included:
Supporting acquisition of suitable modern technologies.
Assisting technological upgradation of Micro, Small and Medium Enterprises.
Promoting energy-efficient and environmentally friendly technologies.
Increasing domestic manufacturing and value addition.
Supporting indigenous technological development to reduce external dependence.
The broader National Manufacturing Policy targets included:
Raising manufacturing’s share in GDP to approximately 25% over the medium term.
Creating approximately 100 million additional jobs by 2022.
Increasing technological depth and domestic value addition.
Providing necessary skills to rural migrants and the urban poor.
Improving the global competitiveness of Indian manufacturing.
All three initiatives were therefore part of the National Manufacturing Policy.